Category Archives: World Finances

Growth in MasterCard payments

MastercardThe second largest company in the world for card payments MasterCard reported higher than expected earnings in the second quarter, thanks to growth in the volume of payments. The net income increased by 10% to 931 million USD (80 cents per share) between April and June, compared to 848 million USD (70 cents per share) a year earlier. The net income grew by 13.4% to 2.38 billion USD.
The average estimate of analysts was for earnings per share of 77 cents and revenue of 2.31 ​​billion USD. The volume of payments made ​​with cards MasterCard, swelled by 12.5% to 821 billion dollars, calculated in local currency due to gains in Europe, Asia-Pacific, Middle East and Africa. The volume of payments in the United States increased by 10.1% to 289 billion USD.
The price of the shares of MasterCard rose by 2.3% since published financial results in May, trailing the index S&P 500, which added 4.6% to its value over the same period.

UBS reported 15% profit growth in Q2 2014

UBSUBS reported 15% profit growth in Q2 2014 amid lower costs. The net profit the lender rose to 792 million Swiss CHF (876 million USD) compared to 690 million CHF an year earlier, said the Zurich-based institution. For comparison the analysts predicted a slight increase to 719.3 million CHF.
The CEO of UBS Sergio Ermotti made ​​a big cost reductions in the amount of 2.1 billion CHF after the bank was facing increased pressure due to the decline in revenues and higher costs of litigation. The Bank aims to promote the return on equity to more than 15 percent by 2016 from 7.6% in the first half of this year. The cost of UBS fell by 6.9% to 5.9 billion CHF during the quarter, which helped their level reaches 82.8% of revenue compared to 86.2% an year earlier.
Earlier this year, the bank paid 300 million EUR (403 million USD) to the authorities in the German city of Bochum to settle the dispute whether help their clients to evade taxes. The lender set aside 120 million CHF for settling disputes during the quarter, bringing the total cost of legal provisions for the period amounted to 254 million CHF.

Asia will grow with 7.1% in 2014 according to the World Bank forecast

Asia industryThe World Bank (WB) estimates that this year recovering demand from industrialized countries will stimulate economic growth in the export-dependent countries in Asia. According to the international financial institution developing Asian economies will grow by an average 7.1% this year. In practice, the bank forecast remains that in 2013 China will increase its gross domestic product (GDP) of 7.6% instead of 7.7%, as expected by the World Bank in 2013. According to the latest research by Finweek Journal, the report by international lenders indicates that the process of reducing the size of asset purchases by the US Federal Reserve, which began this year, which should after a certain time to raise the yield on US Treasuries, it has caused great losses Asian markets.
“The strong global economy growth this year will help the enlargement of the region at a relatively steady pace until he adjusts to tighter global financial conditions”, said Vice President of the World Bank for the East Asia Axel van Trotsenburg.

China became leader in oil imports from OPEC

OPECChina will displace the United States from the top position in terms of actual oil imports from member countries of the Organization of Petroleum Exporting Countries (OPEC).
“A few years ago China surpassed the U.S. in terms of purchases of crude oil from the Persian Gulf. In 2013, the Asian country will become a leader in the supply of crude oil from OPEC countries”, it said in an analysis of The Wall Street Journal Europe. According to the organization during the first half of China’s imports from OPEC has reached 3.7 million barrels, while USA – 3.5 million barrels. As a result, this year for the first time in history, Beijing will overtake Washington on purchases of crude oil from OPEC. The third position goes hand in India by 3.4 million barrels.
“The transformation of China into a major importer of oil from the Middle East will increase diplomatic tensions between USA and China in this key region of the world”, the more analysts from The Wall Street Journal Europe.

Egypt will not need of a loan from World Bank and IMF

Money USAEgypt will not need funding from World Bank (WB) and International Monetary Fund (IMF), although agreement was reached after review of the budget deficit reduced expectations, said today Finance Minister Samir Raduil, said.
“At this stage there is no need to turn to the Bank and Fund,” said Raduil, adding that the country still supports “the good relations” with both institutions. Qatar last week provided $ 500 million in support of the Egyptian budget. “This is a gift,” replied the minister to question the conditions of funding. On June 1st, the Egyptian government approved a budget for 2011-2012, which increased by nearly 25 percent spending to create jobs and help the poor. The U.S. also promised to assist financially and to simplify the Egyptian part of the debt of the Arab state. Obama said Washington will forgive a debt of $ 1 billion of Cairo and the country will provide loan guarantees for $ 1 billion to “create infrastructure and jobs.”
Saudi Arabia also promised loan to Egypt worth $ 4 billion on preferential terms.

The gold price kept over 1500 USD per ounce

GoldThe price of gold set a new record today, quotations remained more sustained than 1500 dollars per ounce. The reason for this was a significant retreat of the dollar, which drew investors to demand higher security. Platform Globex electronic trading today gold for June delivery is moving up from 0.65 percent to 505.80 dollars an ounce, a new record in the history of trade in precious metals. The foreign exchange market the euro is progressing strongly, the rise of 1.4 per cent to $ 1,4522 EUR / USD. The single currency has advanced greatly, regardless of the problems that have troubled countries in the periphery of the eurozone. The US Dollar Index does move with a decline of 0.9 percent to 74.37 points. The appetite growing for gold in recent days because of reduced prospects for the credit rating of U.S. debt problem and crisis in Europe and the overall desire of investors to risk aversion. In today’s trading silver reached a new 31-year high, while moving with a growth of 1.5 percent to 44.56 dollars per ounce. Copper rising by 1.7 per cent, while platinum and palladium prices increased by 1.3 and 3.25 per cent.

S&P decreased with 3 stages the rating of Tokyo Electric Power

S&P credit ratingThe international rating agency Standard and Poor’s lowered with three long-term credit rating of Japanese utility Tokyo Electric Power, which is the operator of damaged NPP Fukushima 1, Prime-Tass reported. The rating of the Tokyo Electric Power was reduced in grade “A +” via the power of “BBB +”. The main reason is that the company in January threatens danger in connection with huge claims for compensation for losses that have caused the accident at the NPP Fukushima-1. The total amount of monetary claims could reach 11 trillion. yen (133 billion dollars). Government of Japan even consider a partial nationalization of the energy company and accordingly to provide guarantees for its future liabilities. Shortly before the international rating agency Moody’s also said to lower the credit rating of Tokyo Electric Power – Grade “A1” to “Vaa1. Today also announced that starting tomorrow in the ocean disposal of radioactive elements in water by the breakdown Japanese NPP Fukushima-1.

Google became the most expensive brand in the world

Google brandThe U.S. company Google has become the most expensive brands this year, while Coca-Cola dropped from the rankings of the top ten for the first time since the survey is conducted of Brand Finance. It presented 500 brands with the highest value in the world. The Google’s brand value is estimated at 44.3 billion dollars in this year’s rankings. This puts it in the first place, as close to it is Microsoft with a value of 42.8 billion dollars. In the previous edition of the chart based on Bill Gates’ company was in fifth position. “From a global perspective five of the top ten brands are progressing rapidly and related technology sectors. This again underlines the importance of technological innovation in the promotion and creation of brands with great value, “said Executive Director of Brand Finance, David Haig. Last year, first in the ranking was chain retail Wal-Mart, in the new edition of the ranking brand is the third position with a value of 36.2 billion dollars. The top ten companies in the ranking of Brand Finance are occupied by American companies. In the top five fall IBM and Vodafone, as the value of both brands is set to respectively 36.15 and 30.67 billion dollars.

The fluctuations about JPY continues

EUR USDThe day began with a fall of the yen, after rising Japanese Exchange and another financial injection by the central bank slowed down demand for risky assets. Yesterday the yen against the dollar again rose to ¥ 80,60, which is the lowest level since November onwards. Meanwhile sterling fell to ¥ 129,17, while the euro has depreciated to ¥ 111,95 yen. The Swiss franc also advanced against major currencies as against the dollar reached a new record high at 0.9139. Sterling in turn depreciated by 1.8 percent compared to the CHF 1.4687 level. The Britain remained relatively weak currency as the dollar weakened to $ 1.5977 while the euro rose to a four-peak at £ 0,8708 sterling. Moody’s lowered the credit rating of Portugal with two degrees from A3 to A1, which strengthened concerns about the crisis in Europe and had a momentary pressure on the euro. The Fed did not surprise market participants, leaving unchanged the basic interest rate ranging from 0 to 0.25% and unanimously confirmed the program for the purchase of government bonds.

Australian economy is still staying strong

AustraliaThe Australian economy remains strong and has accelerated its pace of growth in the last quarter of 2010, just before severe natural disasters that struck the country early this year. The Gross Domestic Product (GDP) of Australia increased by 0.7 percent on a quarterly basis and thus the economy switches to a higher speed after the third quarter marked a minimum growth of 0.1 per cent. The data of Statistical Office in Sydney surpassed market expectations for GDP growth of 0.6 percent. Initial estimates for the third quarter showed growth of 0.2 percent. Compared to the last quarter of 2009 GDP increased by 2.7 per cent against an expected growth rate of 2,6 per cent. The consumption expenditure of households increased by 0.4 percent during the quarter and 2.8 percent annually. Investment in housing also increased by 0,4 percent. The stability of the Australian economy led to the discovery of 330 thousand new jobs in the country last year, while unemployment fell to 5%. Unemployment rates in other developed economies like the U.S. and eurozone, are nearly twice as high. The last quarter of last year was the eighth in a row, within which GDP grows but at the beginning of this year North-East Australia hit by severe floods seriously and cyclones, which are expected to slow economic growth.